Y. Suzuki et Je. Tyworth, A THEORETICAL FRAMEWORK FOR MODELING SALES-SERVICE RELATIONSHIPS IN THE TRANSPORTATION INDUSTRY, Transportation research. Part E, Logistics and transportation review, 34(2), 1998, pp. 87-100
Citations number
12
Categorie Soggetti
Transportation,"Engineering, Civil",Transportation,"Operatione Research & Management Science
This paper presents a theoretical framework for estimating the functio
nal form of the relationship between sales and service performance for
transportation providers. We introduce a method of improving model pe
rformance by utilizing a concept of human behavior that has never been
incorporated into the models of sales-service relationships. This con
cept, called the loss aversion property, claims that customers (shippe
rs) react more strongly when they experience service performance below
their reference point (expectation) than when they experience service
performance above their reference point. Using this concept, we posit
that a one unit decrease in service quality from the customer's refer
ence point would decrease a carrier's sales more than an equivalent-si
zed increase in service quality would increase sales. To incorporate a
n asymmetric pattern of the sales-service relationship, we develop a m
odel that makes a key distinction between sales response to service in
crease and to service decrease. The model is demonstrated using hypoth
etical data. The discussion addresses multiple service quality measure
s as well as data implementation issues. (C) 1998 Elsevier Science Ltd
. All rights reserved.